Report of Chief Executive Officer by changcheng2

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									                                                                   MANSFIELD DISTRICT COUNCIL



                      Report of Portfolio Holder for Resources
                                          To
                                      CABINET
                                         On
                              22 nd NOVEMBER, 2004




  CAPITAL PROGRESS REPORT AND PRUDENTIAL INDICATORS TO 30 SEPTEMBER
                                2004


1.      SUMMARY

This report summarises the progress made on capital schemes up to the end of the second
quarter 2004/05. It also includes performance against the Prudential Indicators introduced
on 1 April 2004.


2.      RECOMMENDATIONS

(i)     That expenditure totalling £2.50m as at 30 September 2004 be noted.

(ii)    That performance against the current prudential indicators for capital expenditure,
        prudential borrowing and operational boundary be noted.

(iii)   That the revised prudential indicators for capital expenditure (HRA £4,039k and non-
        HRA £5,415k) are approved.

(iv)    That the revised indicators are ratified by Full Council in accordance with legislation.


3.      BACKGROUND

3.1     Capital Progress

The figures quoted in this report represent only that element of expenditure that needs to be
financed by Mansfield District Council using Supported Capital Expenditure (Revenue)
Allocations, Major Repairs Allowance, capital receipts and contributions from reserves. The
element of capital expenditure financed by external grants is not included in Appendix 1.
However, the Prudential Indicators shown in Appendix 2 relating to capital expenditure
includes all expenditure regardless of the source of financing.

3.1.1   Leisure & Technical Services

Despite regular contact, the two Heritage Lottery Fund grants due to be paid to us in respect
of Titchfield Park Restoration Scheme and raised in the last progress report still haven’t
been received.

The project officer for Titchfield Park is continuing to chase the grant paying body and further
approaches are being made to resolve this situation.
                                                                MANSFIELD DISTRICT COUNCIL



The other significant scheme in this area is the Sherwood Colliery Pedestrian Access where
some delay has been experienced following consultation undertaken with Nottinghamshire
County Council, Railtrack and the Architects for Blake Street regarding proposals for the
subway. A response is anticipated from NCC in the near future regarding potential support
from the Local Transport Plan.

3.1.2   Liveability

Capital expenditure on this area commenced in the current financial year. It is budgeted to
spend around £1m this year of which the majority will be financed by grant. One small
element of expenditure is due to be financed from revenue however this is to be contained
within existing budgets.

3.1.3   Regulatory

No issues to raise.

3.1.4   Marketing & Regeneration

No issues to raise.

3.1.5   Resources

The main variance on this budget relates to Planned Preventative Maintenance (£120k). Of
this £50k is reserved for emergency works leaving the residue (£70k) to be spent on the
current planned maintenance programme.

At a recent Cabinet (11 October 2004), £25k was approved to be used for the enhancement
of access to our public buildings under The Disability Discrimination Act. This has yet to be
committed.

The Asbestos Survey work had experienced a delay due to staff commitments. This has
now been resolved with an external supplier being used. The first tranche of work is due to
commence November 2004 and will continue until the budget is fully utilised.

3.1.6   Economic Development

The main variance in this area still relates to Oakham Business Park where the approved
budget was fully utilised on compensation payments made in the last financial year.
However, a report was due to go to the previous Cabinet (8 November 2004) to report
progress on the Industrial Development Capital Programme which includes this scheme.
Any amendments to the budget approved at that Cabinet meeting will be amended in the
next capital progress report.

3.1.7   Urban Housing Regeneration

No issues to raise.

3.1.8   Housing Revenue Account

Increased resources have been available in recent years, and it has become evident that the
current procurement arrangements have not been able to keep pace and deliver an
expanded programme. Whilst significant programmes are being progressed towards
achieving the Decent Homes Standard, slippage is expected in respect of this year’s budget.
                                                               MANSFIELD DISTRICT COUNCIL



As a result the capital budget has been amended (reduced by £2m) in line with more realistic
levels.

A revised procurement strategy has been approved that will create the capacity to
significantly increase expenditure, and this will be effective from 2005/6. Underspends will
be carried forward and expended via the revised procurement arrangements.

3.2     Prudential Indicators

In the previous capital progress report it was indicated that that the Prudential Indicators
would be revised at this time. As a result of the success in receiving the Liveability Fund
Grant (which was not known at the time that the original Prudential Indicators were set) and
the realignment of the HRA capital budget (referred to in 3.1.8) the capital expenditure
Prudential Indicators have also been revised (see Appendix 2). In accordance with
legislation these revised indicators (HRA and non-HRA) need to be ratified by Full Council.

As can be seen in Appendix 2 the Authority is operating well within its limits for external
borrowing (Authorised Limit and Operational Boundary).

4.      OPTIONS AVAILABLE

Not applicable.

5.      BUDGETARY IMPLICATIONS

Budgetary implications were considered when the capital programme was approved.
Changes to the original budget are assessed and monitored on an on-going basis.

6.      ALIGNMENT TO COUNCIL PRIORITIES

This report has been prepared in accordance with the requirements for reporting as included
in the Finance Department’s Best Value Performance Plan.

7.      IMPLICATIONS RELATING TO RELEVANT LEGISLATION

None.

8.      CONSULTATION

Chief Executive Officer
Deputy Chief Executive Officer
Head of Finance
Head of Housing
Head of Leisure and Technical Services
Head of Marketing and Regeneration
Head of Regulatory Services
Head of Direct Services
Head of Information and Communications
Solicitor and Monitoring Officer

9.      BACKGROUND PAPERS

Capital Monitoring Group minutes.
                                                                      MANSFIELD DISTRICT COUNCIL




                                                                               Appendix 1
MDC Commitment for the current capital programme

                                         2004/05       Expenditure    Forecast for     Forecast
                                         Budget         to 30/09/04   remainder of    balance as
                                                                        2004/05       at 31/03/05
Leisure & Technical Services              116,943          353,037        -247,560          11,466
Liveability                                12,500            78,922        -19,716        -46,706
Regulatory Services                                0          4,905          -4,426           -479
Marketing & Regeneration                  333,760            91,777        216,435          25,548
Resources                                 334,847          -293,044        443,550        184,341
Economic Development                      110,030            59,598        273,354       -222,922
Urban Housing Regeneration               2,800,000         792,737       1,852,272        154,990
Housing Revenue Account                  4,038,906        1,249,912      2,062,232        726,762
                                         7,746,986        2,337,844      4,576,141        833,000
Corporate Charges                         197,500            98,750         98,750              0
Estimated admin costs of CH               120,000            60,000         60,000              0
sales
Total expenditure to be financed         8,064,486        2,496,594      4,734,891        833,000


Financed By
SCE (R) 2004/05                          2,000,000
MRA (B/fwd + 2004/05)                    4,039,145
Unsupported NCC SCA                       147,162
Receipts received as at September 2004
- Housing (Council House Sales)           800,000
- Non-housing (other Sales)               620,000
Capital Fund Reserve
- Specific Reserves                       226,333
- General Reserves                        231,846
                                         8,064,486
                                                              MANSFIELD DISTRICT COUNCIL




                                                                Appendix 2

1.     Prudential Indicators to be revised

                                               2004/05        2004/05        2004/05
                                               Original       Revised        Actual to
                                                Target                        Sept 04
 Capital Expenditure
 Non-HRA                                         4,541          5,415          4,208
 HRA                                             6,157          4,039          3,502



2.     Prudential Indicators not to be revised at this time

                                                          2004/05       2004/05
                                                           Target       Actual to
                                                                         Sept 04
 Authorised Limit for external debt
 Borrowing                                                    58,445          55,024
 Other Long term Liabilities                                     147             158
                                                              58,592          55,182

 Operational Boundary for external debt
 Borrowing                                                    57,444          55,024
 Other long term liabilities                                     147             158
                                                              57,591          55,182

								
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